Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)

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The Effect of Financial Distress, Transfer Pricing and Profitability on Tax Avoidance in Mining Companies Listed on the Indonesia Stock Exchange in 2020-2024

Authors
Danar Irianto1, *, Cindi Kurnia Putri1, R. Ridho Tanso1
1Department of Business Management, Batam State Polytechnic, Batam, Indonesia
*Corresponding author. Email: danar@polibatam.ac.id
Corresponding Author
Danar Irianto
Available Online 13 February 2026.
DOI
10.2991/978-94-6463-990-2_41How to use a DOI?
Keywords
Financial Distress; Transfer Pricing; Profitability; Tax Avoidance
Abstract

This study reevaluates whether financial distress, transfer-pricing activities, and profitability play a role in shaping tax-avoidance behavior among mining firms listed on the Indonesia Stock Exchange (IDX) throughout 2020–2024. A quantitative approach was applied, drawing on secondary data sourced from audited annual reports available on the IDX’s official portal. Through purposive sampling, seven companies met the selection criteria and were included in the analysis. Panel-data regression techniques were employed using the EViews 12 software package.

The findings indicate that transfer-pricing practices exhibit a positive and statistically significant association with tax avoidance. Conversely, neither financial distress nor profitability shows meaningful explanatory power in predicting tax-avoidance decisions. Overall, the results imply that mining firms tend to utilize related-party pricing mechanisms to reduce tax liabilities, while financial pressure and earnings performance do not serve as primary drivers of tax-avoidance strategies.

Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
13 February 2026
ISBN
978-94-6463-990-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-990-2_41How to use a DOI?
Copyright
© 2026 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Danar Irianto
AU  - Cindi Kurnia Putri
AU  - R. Ridho Tanso
PY  - 2026
DA  - 2026/02/13
TI  - The Effect of Financial Distress, Transfer Pricing and Profitability on Tax Avoidance in Mining Companies Listed on the Indonesia Stock Exchange in 2020-2024
BT  - Proceedings of the 7th International Conference on Applied Economics and Social Science (ICAESS 2025)
PB  - Atlantis Press
SP  - 619
EP  - 631
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-990-2_41
DO  - 10.2991/978-94-6463-990-2_41
ID  - Irianto2026
ER  -